BigCityFan This is a fairly centrally located hotel. You can walk to the main square, places of interest, and good restaurants in a few minutes. Comfortable and relaxed. Staff are very pleasant to deal with. Breakfast staff in particular were very sweet. A good find for a stay in a lovely city.

jtlande I really loved my stay at Casa de Avila. The hotel is really beautiful, and the folks there (especially Rachel at the front desk) are incredibly friendly. My room was perfect - though you should see what's available; I most enjoyed my room on the bottom floor with a window and a queen sized bed, but there are other rooms that I think aren't as nice. I was worried about the location, but found that it's actually quite convenient. It's a short walk to the Plaza de Armas and the rest of town, and it turns out that it's on a very safe-feeling street. Don't forget to wander up to the top of the roof to watch the sunset (with a bottle of wine in hand)...it's quite a nice view from there.
I highly recommend this place if you find yourself in Arequipa! It can be very popular at times, so if you do want to stay here I suggest making reservations before you get there.